KUALA LUMPUR: The Securities Commission Malaysia (SC) and Hong Kong’s Securities and Futures Commission (SFC) has signed a landmark memorandum of understanding (MOU) to strengthen capital market connectivity by expanding the mutual recognition and cross-listing of funds and introducing a simplified dual initial public offering (IPO) listing framework.
The MoU broadens the mutual recognition of funds to include exchange-traded funds (ETFs), including futures-based, leveraged, inverse and commodity ETFs, as well as real estate investment trusts (REITs), while enhancing regulatory cooperation between the two jurisdictions.
It is expected to widen investment opportunities for issuers and investors, improve access to capital and deepen cross-border participation in both markets.
SC chairman Datuk Mohammad Faiz Azmi said the agreement marks a significant milestone in strengthening capital market connectivity between Malaysia and Hong Kong.
“This MoU establishes a practical framework to facilitate greater cross-border investment, broaden access to our respective capital markets and enhance investment opportunities for issuers and investors in both jurisdictions,” he said in a statement.
Faiz said the framework would support more cross-border listings and product offerings, creating new opportunities for investors and intermediaries while deepening financial linkages between the two markets.
SFC chairman Dr Kelvin Wong said Hong Kong and Malaysia have built a productive regulatory partnership over decades.
“Our markets are well placed to complement each other as vital financial gateways connecting global capital respectively with the Chinese Mainland and Southeast Asia. We will continue to strengthen our partnership to drive shared prosperity,” he said.
To facilitate equity cross-listings, the Stock Exchange of Hong Kong has added Bursa Malaysia Securities Bhd to its list of Recognised Stock Exchanges, allowing companies listed on Bursa Malaysia to apply for a secondary listing in Hong Kong.
The simplified dual IPO framework, effective from September 2026, will allow issuers pursuing simultaneous primary and secondary listings to submit a single set of documents, including the prospectus.
Separately, the SC also signed an MOU with Hong Kong’s Accounting and Financial Reporting Council to facilitate information sharing, supervisory assistance and cooperation on financial reporting compliance and audit oversight, strengthening investor protection and confidence in both markets.
The new mutual recognition of funds policies take effect immediately, while the dual IPO listing framework will come into force in September 2026.
